Guilbeault defends carbon price, says on average, households will pay more but rich will shoulder burden
Canada’s environment and climate change minister says that on average, households may eventually pay more for the carbon price than they get back in rebate payments, but the Liberal government is helping Canadians lower their energy costs in other ways.
The carbon price increased this weekend, from $50 to $65 per tonne. According to the Canadian Taxpayers’ Federation, the change will translate to a higher cost for consumers at the gas pumps, from the current 11.05 cents per litre, to 14.31 cents per litre, among other impacts.
The hike comes just days after a report by the Parliamentary Budget Officer (PBO) this week stating that by 2030, when the price of carbon is expected to reach $170 per tonne, most households will see a net loss, despite the rebate payments offered by the federal government to offset the surcharge.
“When both fiscal and economic impacts of the federal fuel charge are considered, we estimate that most households will see a net loss,” PBO Yves Giroux said in a statement following release of the report. “Based on our analysis, most households will pay more in fuel charges and GST—as well as receiving slightly lower incomes—than they will receive in Climate Action Incentive payments.”
Environment Minister Steven Guilbeault told CTV’s Question Period host Vassy Kapelos in an interview airing Sunday that while "on average, households will pay more” because of the carbon price increase, even after the rebates, he says the system is designed to be proportional, meaning wealthier Canadians will still foot larger bills.
“If you do the average, yeah, it's true, it's going to cost more money to people, but the people who are paying are the richest among us, which is exactly how the system was designed,” he said.
“So the rich pay more for their carbon consumption and their carbon pollution, and we're supporting, through the transition, middle class Canadians and low income Canadians, and that's exactly what we're doing,” he also said.
Guilbeault said that while the rebates may not cover the full cost for Canadians, the federal government is doing a number of other things to mitigate the cost of climate change and help people transition to a lower carbon future. He cited incentive programs to purchase electric vehicles, and home energy retrofits to reduce home heating costs, as examples.
“This is another way we're helping Canadians reduce their environmental impact, but also their overall energy costs,” he said, adding the PBO’s report does not take into account the cost of the impacts of climate change.
But when pressed on the system itself and a commitment that most households wouldn’t be out of pocket for the carbon price, Guilbeault again pointed to it being proportional, and lower income Canadians seeing greater rebates.
“We have said that the rebates would help the people most in need in Canada and that's exactly what the system is doing,” he said.
Guilbeault also said in a statement this week the PBO report does “not account for economic opportunities that come with driving clean tech innovation,” and referenced the recently tabled federal budget and the earmarked funds for clean energy included in it.
“That’s like a business calculating their revenues, by looking only at one side of their ledger book,” he said of the PBO report.
The federal Conservatives have repeatedly issued calls for the Liberals to axe the carbon price, with party leader Pierre Poilievre saying in the House of Commons this week: “It’s April Fool’s Day, and the joke will be on Canadians. Why won’t they cancel this tax?”
Meanwhile in Ontario, the carbon price became a source of friction between Premier Doug Ford and Guilbeault this week. Ford has been critical of the program, and on Wednesday, Guilbeault said he found the comment “incredibly rich coming from a premier who has no plan to fight climate change.”
The comment prompted the premier to call Guilbeault a “real piece of work.”
“I didn't say that Ontario wasn't doing anything,” Guilbeault told CTV’s Question Period. “I said that the Ontario government has no climate plan, which is true, and they've admitted as much themselves.”
He added he considers a “plan” one with a series of measures with targets and progress reporting.
Guilbeault said despite the back-and-forth comments this week, he works closely with the Ontario government and its ministers to "try and find a path forward" on several environmental projects and policies.
With files from CTV News’ Stephanie Ha
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
What Canadians think of the latest Liberal budget
A new poll suggests the Liberals have not won over voters with their latest budget, though there is broad support for their plan to build millions of homes.
opinion Why you should protect your investments by naming a trusted contact person
Appointing a trusted person to help with financial obligations can give you peace of mind. In his personal finance column for CTVNews.ca, Christopher Liew outlines the key benefits of naming a confidant to take over your financial responsibilities, if the need ever arises.
Teacher shortages see some Ontario high school students awarded perfect grades on midterm exams
Students at a high school in York Region have been awarded perfect marks on their midterm exams in three subjects – not because of their academic performances however, but because they had no teacher.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Ottawa injects another $36M into vaccine injury compensation fund
The federal government has added $36.4 million to a program designed to support people who have been seriously injured or killed by vaccines since the end of 2020.
An Ontario senior thought he called Geek Squad for help with his printer. Instead, he got scammed out of $25,000
An Ontario senior’s attempt to get technical help online led him into a spoofing scam where he lost $25,000. Now, he’s sharing his story to warn others.
Her fiance has been in prison for 49 years. She's trying to free him before it's too late
Christine Roess is a retired consultant. Ezra Bozeman has spent the last 49 years in prison, serving a life sentence for a murder he says he didn’t commit. Against the odds, the two fell in love.
Local Spotlight
Fergus, Ont. man feels nickel-and-dimed for $0.05 property tax bill
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
Twins from Toronto were Canada's top two female finishers at this year's Boston Marathon
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
'I'm committed': Oilers fan won't cut hair until Stanley Cup comes to Edmonton
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
'It's not my father's body!' Wrong man sent home after death on family vacation in Cuba
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
'Once is too many times': Education assistants facing rising violence in classrooms
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
What is capital gains tax? How is it going to affect the economy and the younger generations?
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
UBC football star turning heads in lead up to NFL draft
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
Cat found at Pearson airport 3 days after going missing
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.